Dow Corning reports sales and profits for fourth quarter and year end 2009
Dow Corning Corp. today reported consolidated net income of $270.5 million for the fourth quarter of 2009, an increase of 57 percent from net income of $172.6 million reported in the fourth quarter of 2008. For all of 2009, net income was $579.6 million, a decline of 22 percent from net income of $738.7 million reported in 2008. Dow Corning reported adjusted consolidated net income of $211.3 million for the fourth quarter and $578.0 million for all of 2009. The 2009 adjusted net income excluded restructuring charges and the tax benefit associated with foreign dividends. In 2008 consolidated adjusted net income was $174.2 million for the fourth quarter and $775.7 million for the year. The 2008 results were adjusted for a loss from a write down of certain investments.
Sales were $1.47 billion in the fourth quarter of 2009, 13 percent higher than sales of $1.30 billion in the same quarter of 2008. Sales for all of 2009 were $5.09 billion, 7 percent lower than sales of $5.45 billion reported in 2008.
Dow Corning also made a strategic acquisition in the fourth quarter having acquired two chemical grade silicon manufacturing assets from Globe Specialty Metals for approximately $175 million.
Comments from Dow Corning’s executive vice president and chief financial officer, J. Donald Sheets:
* “Dow Corning saw a significant recovery in its silicones business in the second half of the year, as our two-brand strategy allowed us to get the right products and solutions into the hands of our customers.”
* “Our polycrystalline silicon business through Hemlock Semiconductor Group had another solid year, operating at expected manufacturing rates while supplying all contracted volumes to both solar and semiconductor customers.”
* “While it’s still a volatile economic environment, the year ended with many positive signs. Dow Corning’s fourth quarter sales performance is another significant step in the global recovery of our business.”
* “2010 will be another active year for Dow Corning as major capital expansions in China will be completed and Hemlock Semiconductor Group’s expansions in the United States will continue to bring new capacity online. We’ll also focus on expanding our markets by investing in our diverse innovation portfolio and by continuing to expand our geographic footprint.”
View Q4 2009 Condensed Consolidated Statements of Operations (PDF Size = 13.2 KB)
About Dow Corning
Dow Corning provides performance-enhancing solutions to serve the diverse needs of more than 25,000 customers worldwide. A global leader in silicones, silicon-based technology and innovation, Dow Corning offers more than 7,000 products and services via the company’s Dow Corning® and XIAMETER® brands. Dow Corning is equally owned by The Dow Chemical Company and Corning, Incorporated. More than half of Dow Corning’s annual sales are outside the United States.
About Hemlock Semiconductor Group
The Hemlock Semiconductor Group is comprised of two joint ventures: Hemlock Semiconductor Corporation and Hemlock Semiconductor, L.L.C. The companies are joint ventures among Dow Corning Corporation, Shin-Etsu Handotai, and Mitsubishi Materials Corporation. Hemlock Semiconductor is a leading provider of polycrystalline silicon and other silicon-based products used in the manufacturing of semiconductor devices, and solar cells and modules. Hemlock Semiconductor began its Michigan operations in 1961 and broke ground at its Tennessee location in 2009.
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